Worldwide Smart Home Devices Market Up 11.7% in 2021 with Double-Digit Growth Forecast Through 2026
April 27, 2022 | IDCEstimated reading time: 2 minutes
The worldwide market for smart home devices grew 11.7% in 2021 compared to 2020 with more than 895 million devices shipped, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Notwithstanding the market volatility due to the coronavirus pandemic and its impact on supply chains as well as demand-side shocks, IDC anticipates that the worldwide smart home device market will see steady growth over the next five years as smart home users expand their smart home ecosystems and seek more sophisticated connected experiences. The market's growth will also be driven by high broadband penetration and increasing numbers of wireless home networks, although consumer concerns around privacy, security, costs, and interoperability will constrain the market's development for the foreseeable future.
"The notion of the 'smart home' is well and truly mainstream in many parts of the world now," said Adam Wright, senior research analyst, Internet of Things: Consumer. "Smart home devices have proved their merit during the global pandemic as adding meaningful value to people's lives at home, such as easing social isolation, enhancing home security, and delivering convenience and entertainment, among other benefits. As we look ahead, and buoyed by strong demand, the market is poised for solid growth despite ongoing disruptions from supply chains, logistics, and uneven economies across the globe."
North America held the largest share of unit shipments in 2021 and grew 11.4% year-over-year. The Asia/Pacific region was the second largest segment by shipment volume with 31% of shipments and had a year-over-year growth rate of 10.8%. Western Europe and Latin America posted solid growth of 14.8% and 11.2% respectively.
"While there's plenty of growth to be had in the smart home market, there are still challenges ahead as lack of interoperability and the longevity of smaller OEMs are issues that will negatively impact the market," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "While the upcoming Matter standard will help negate some of these concerns, OEMs will still need to offer a robust services component in addition to hardware in order to stay relevant."
Networked video entertainment devices – such as smart TVs, streaming sticks, and internet-connected set-top boxes – held the largest volume of shipments with 34.7% share and grew 4.8% year-over-year in 2021. Smart lighting devices are forecast to be the fastest growing category of devices with a five-year compound annual growth rate (CAGR) of 23.6%. Driving the market's growth at a global level is rising broadband penetration, rising disposable incomes, and rising consumer awareness of smart home devices and the cost savings, convenience, and energy efficiencies that they can deliver.
Suggested Items
PC Client CPU Shipments in 1Q24 Up 33% YoY
05/10/2024 | Jon Peddie ResearchJon Peddie Research reports the growth of the global PC client-based CPU units market reached 62 million units in Q1’24, a decrease of -9.4% quarter to quarter and a 33% growth from Q1’23.
Omdia: OLED Monitor Display shipments to surge by 123% YoY as Top Brands Embrace its Technology in 2024
05/09/2024 | PRNewswireOLED monitor display shipments significantly increased in 2023, following an upsurge of 415% year-over-year (YoY), according to Omdia's Monitor Display & OEM Market Tracker. This trend is set to continue with Omdia forecasting a 123% YoY increase in 2024, reaching 1.84 million units, driven by industry leaders Samsung Display and LG Display.
IDTechEx Report: Illuminating the Future of Lidar in Automotive
05/09/2024 | PRNewswireIn the rapidly evolving landscape of Advanced Driver-Assistance Systems (ADAS) and autonomous driving, sensor technologies have emerged as a pivotal force driving innovations in the automotive industry.
Sondrel Awarded New Video Processor ASIC Design and Supply Contract
05/09/2024 | SondrelSondrel, a leading provider of ultra-complex custom chips for leading global technology brands, is pleased to announce that it has won a major ASIC design and supply contract for a next generation, video processing chip.
IDC Forecasts Slower Growth for Global Telecommunications Services Market: Could AI Help Telcos to Maintain Healthy Margins?
05/08/2024 | IDCWorldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.